Report questions East Kentucky Power's coal plans

East Kentucky Power Cooperative is relying too much on coal, and that means its customers will pay higher bills for decades as a national plan to reduce greenhouse gases kicks in, says a study commissioned by environmental groups.

A new study commissioned by environmental groups says East Kentucky Power Cooperative is concentrating too heavily on building new coal-fired generating plants, a practice that could mean higher customer bills for decades as new pollution laws take effect.

The study by Synapse Energy Economics says the utility, which provides power for half a million homes and businesses throughout Kentucky, also faces uncertainty over financing and future energy sales.

"Such an investment locks customers into paying for a course of action that could prove, and is indeed likely to prove, an ill-chosen option as greater certainty emerges over the next several years," said the study, which was released Wednesday by the Sierra Club, the Kentucky Environmental Foundation and Kentuckians for the Commonwealth. It was based on planning documents the utility filed with the Kentucky Public Service Commission.